Financial Investment Guidance. Do you want to invest part of your savings or your capital in a reputed profitable financial investment? How to determine if an investment is really interesting? Follow the guide to investing and investing your money smarter.
Concept of return in a financial investment
The term financial investment designates any expenditure aimed at benefiting from the additional profitability of a fund engaged in a transaction or an operation on financial securities or on goods or securities of the real economy, such as real estate. It is therefore important to know how to save.
Whatever medium your money is placed in, your main motivation should be the prospect of profit at the end of the investment period. The profitability of a financial investment can be assessed by comparing the returns of any medium with those of a financial investment generating known interest rates. A profitable financial investment offers its holder capital gains at least equal to the value of inflation at the maturity of the investment. We must therefore make the right choice in the type of investment and in his choice of investment.
The risks in a financial investment
A financial investment, no matter how interesting, always involves risks. The rule to remember is even very simple: the more a financial investment offers high returns, the greater the risks to which you are exposed. An investment in real estate is not, for example, protected from the risk of a sudden drop in market prices, following the explosion of a bubble or the hesitation of buyers. Invest according to your profile and your needs.
From stock market investments to life insurance investments, all financial investments, especially those made in unsecured financial securities, are exposed to varying degrees of risk, depending on the nature and amount of the investment. A good financial investment must therefore be an investment whose proposed return is always greater than the risks incurred.